Chinchilla is a rural town and locality in the Western Downs Region, Queensland, Australia. In the 2021 census, the locality of Chinchilla h…Chinchilla is a rural town and locality in the Western Downs Region, Queensland, Australia. In the 2021 census, the locality of Chinchilla had a population of 7,068 people. Chinchilla is known as the 'Melon Capital of Australia', and plays host to a Melon Festival every second year in February.